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girmant girmant
 
M$1 December 21, 2008 07:31 PM

Does it make sense buying a time share in current economic conditions or at all?

I like travel a lot and I know lots of people who owns time shares - does it make economical sense to own a time share?
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barbsgar barbsgar
 
 December 21, 2008 07:44 PM
At the moment I would hold off on timeshare off plan in a new resort as we are yet to know how many of the big developers are still to be taken out by the credit crunch. The last thing you want is to buy in an watch your money go up in smoke.

However it maybe worthwhile buying some in an established resort where you can physical go and view the resort. A lot of the established resorts have offers where you can go an inspect the resort for a weekend by actually staying in the accommodation and then you attend a meeting where they try and sell you the benefits. There is also plenty of room to haggle.

Like any property at the moment they are bound to be feeling a reduction in value and a loss in sales volume so in an established resort you may pick up a bargain.

Also remember most timeshare is held perpetuity so as long as they keep up the maintenance of the resort then its a good long term investment.

Some key tips on timeshare:
1. Buy a week which you can see yourself using year in and year out. (Round holiday seasons such as Christmas, Easter etc its more expensive but worth it.)
2. Join RCI or similar which give the benefit of space banking your weeks to use in other resorts at different times of the year.
3. Remember that if you space bank be prepared to plan well in advance to make enquiries regarding resorts as there is in most cases waiting lists.

Finally consider one of the big hotel chains such as Hilton they do timeshare (or vacation clubs) points which allows you to access there big pool of accommodation around the world.
Source(s):
www.rci.com
http://www.hiltongrandvacations.com/

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lynemma lynemma
 
December 21, 2008 07:35 PM
I would advise against it. I have lots of reasons for saying this, but simply no.
Source(s):
http://www.askmen.com/money/investing_60/95_investing.html


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tracebooks tracebooks
 
December 21, 2008 07:38 PM
Not a straight time-share, no. But the resorts that offer a similar program based on points make very good sense. My family owns in Mexico, and this year we've used our points to swap for trips to San Diego, Vermont, and Florida. If you pick off-season times, and if you initially by a large place (we bought three bedrooms) you get more points that you can trade.

And some places will allow you to buy extra weeks just for paying the yearly maintenance fee! Our fee is only $100, so we spent that on a week in Vermont at the height of the fall color season, which ironically is the cheapest week of the year. You just have to play the game right and you can really maximize where you can go. Ours also has a clause where once it's paid for (and it is) then just pay the maintenance fee and you can will it to your kids.

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mrnemo mrnemo
 
December 21, 2008 07:40 PM
It never makes sense to buy a time share.

1. Time value of money - money today is worth more than it will be tomorrow due to inflation. If you pre-pay for a vacation, you are taking your money away from another investment opportunity.

2. They have maintenance fees, and they increase every year. Wasted money.

3.Timeshares are a horrible investment. They lose 40% to 75% of their value after you buy them.

4. Rental rates are far lower than you may expect, especially if you are listening to a timeshare salesperson. Go online. Where do you want to go? There are always budget hotels and a travel agent will find you a great vacation within your means, for no charge.

5. I would only consider this if there is a place you just LOVE, and basically want to go there again and again each year.

6. If you must get a timeshare, get one that is a resale at rock bottom prices, and take advantage of the other poor sucker that didn't think to ask the question you just asked ahead of time.

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rkaufman13 rkaufman13
 
December 21, 2008 07:47 PM
No. They are hard to resell, so you're stuck with paying the maintenance fees every year even if you realize you don't like that location as much as you thought. (I am attaching an article from CNN Money that says you should consider yourself "lucky" if you can get back half of what you originally paid)
They are difficult to exchange; my family successfully exchanged their week in northern MN for a week in Orlando, but only after a long, drawn-out encounter with a sales rep.

In 2002 (the most recent year I could find stats), timeshare sales generated 9.4 billion dollars of income for corporations. I see this not as an endorsement of their worth but as further evidence of how profitable this industry is for them, not for you.

Why not rent a timeshare from some poor sucker who doesn't want theirs anymore?
Source(s):
http://money.cnn.com/2002/03/21/pf/yourhome/q_timeshare/
http://www.ote-info.com/index.php?option=com_content&task=view&id=4...


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easyeboy easyeboy
 
December 21, 2008 07:49 PM
I would strongly recommend NOT buying a time share. I looked into it, and what it does is limit your options when it comes to traveling, and in the end it does not really save you as you have to pay an annual fee. In my opinion it just makes your travel more "time-sharish" and not any more exciting or adventurous. If you want to limit your options in travel, and save, then this is for you, but if you are more adventurous, and really like to explore the world, then I would highly advise against it. A better investment is real estate over time, as it usually appreciates in value. There are certainly pros and cons to time shares, yet my opinion that there.
Source(s):
http://www.redweek.com/resources/articles/timeshare-pros-and-cons

http://www.post-gazette.com/pg/06155/694996-37.stm

http://ezinearticles.com/?Looking-to-Buy?-Learn-the-Disadvantages-of-Timesh...

http://en.wikipedia.org/wiki/Timeshare


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4score 4score
 
December 21, 2008 08:07 PM
Normally, I would say no. But in these days of recession, if you can afford it, there are MANY deals out there. For example, a place that sells a week for $10,000 may have many individual owners selling their property for $2500! Current owners may not be able to afford the maintenance costs. Sometimes, owners may be willing to part with a property if you simply take over the maintenance payments. If you found one of these great deals, you could enjoy it until the market comes back and may make money selling it back to the market.

Generally though, timeshares are not "investments". People buy them to have a guaranteed vacation spot in a guaranteed season. Others buy them to trade with other owners for new destinations. It forces you to try new spots.

Good luck and be happy for good!
Source(s):
self experience


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waldo waldo
 
December 21, 2008 08:11 PM
It is never a good option to buy a time share.

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jlunsford jlunsford
 
December 21, 2008 08:28 PM
No, I don't believe so. Companies like RCI are outsourcing lots of their empty spaces to groups like World Ventures. You can rent the same space for less than the actual cost of the timeshare AND pick a date you would prefer.
If you're looking for investment opportunities I believe that there are much better options elsewhere.
Source(s):
www.worldventures.com


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hartwell hartwell
 
December 21, 2008 08:35 PM
no, it never makes sense to buy a time share.

and you must convince your spouse of this fact before you even THINK of taking one of those "free vacation" offers they use to sell them.
Source(s):
https://www.complimentaryvegasgetaway.com/tahitivillage/


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schissel schissel
 
December 21, 2008 08:53 PM
Yikes no! Timeshares are a terrible investment. Just like a new car driving off the lot, they typically lose a large percentage of their value the second you buy.
Even if you are a frequent traveler, chances are you're not going to use the timeshare as much as you think, or the available days won't line up, or you'll get sick of it.
If you're in doubt, map out a yearly (or multi-year) travel budget, and compare the cost of hotels (even really nice hotels) to the cost of the time share.

This is similar to the "rent vs. buy" question that many potential home owners face. While buying a home turns out to be a good investment for many--you have to live somewhere--timeshares are rarely so. And while you can cut back on travel if your paycheck gets lean, you can't unload a timeshare as easily.

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garance garance
 
December 21, 2008 09:26 PM
I never heard anybody say it is good investment. I got friends who have a timeshare in Orlando: they like to go there every year with the kids for Disney, the maintenance is a low fee, they are happy with it. They say that they got more freedom (cooking their meals) and that it costs less than 2 weeks in an hotel plus meals nearby. So it makes financial sense for them. But it still is not a good "investment". These building see a lot of damage just like rentals, they are poorly built, there is a lot of repairs, and usually maintenance is pretty high. Ten years from now, the value cannot be great.

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